FUSE (Filesystem in Userspace) allows non-privileged users to create their own file systems. It works by mounting the file system within the userspace virtual file system. Python has a FUSE library called fusepy that provides a simple interface for implementing FUSE file systems in Python. PEPFS is an example of a FUSE file system implemented in Python that makes Python Enhancement Proposals (PEPs) available as read-only files organized in a file system structure. It uses fusepy and lazily downloads specific PEP files on demand when read.